Making the right choice

1. Making the right choice Active or Passive Fiber?

2. About the speaker: Steve KleinDirector Marketing & Business DevelopmentAllied Telesis NSP GlobalSteve_klein@alliedtelesis.com 408-519-8617 • Steve has 25 years experience in telecommunications, primarily in the fields of access, fiber and broadband technologies • Steve has been one of the pioneers in video over phone line and IPTV development and implementation • He represents ATI on the MEF, and previously served on ITU/FS-VDSL. • Prior to joining ATI, Steve spent 5 years at Zhone Technologies as Director Marketing. Previous to that, he was VP sales at Corecess, VP Business Development at Tut Systems, and VP Business Development at Next Level Communications. • Steve began his career at Pacific Telephone in 1982, later joining NEC America upon moving from the service provider to supplier side of the industry. • Steve holds a degree from San Jose State University, where he graduated after attending the University of Connecticut. • He is a native of California and the Bay Area where he still resides.

3. No One FTTx Answer or Standard GPON Active Ethernet EPON

4. Allied Telesis and FTTx • One of the largest suppliers of FTTx equipment in the world • Over 60 FTTx customer deployments worldwide • 11 U.S. deployments • FTTx used in a variety of applications • University dorms • Military housing • ILEC FTTH • Municipal FTTH • EMC FTTH • Utility Telecom/CLEC • Retail Malls • Both carrier class switching and access FTTx solutions

5. Allied Telesis FTTx Solutions Portfolio

6. Fiber Migration in the Loop • FTTN • ADSL2 + • FTTC • VDSL2+ • FTTB • PON • Active E • 1 GE • VDSL2 • FTTH • PON • Active E

7. The Short History of DSL ASAM 7300 deploy NGDLC replace ASAM 7300 replace AFC replace BLC deploy BLC replace IP DSLAM deploy MSAN deploy MSAN upgrade IP DSLAM upgrade 1998 2002/3 2006 2007 2008 • ADSL From CO • Limited coverage • DS3 or OC3 DSLAM • ADSL in RT cabinet • ADSL2+ introduction • OC12/48 BLC/DSLAM • ADSL2+ in cabinet • 1 G IP DSLAM/MSAN • VDSL2 in cabinet • 1 G & 10G DSLAM • VDSL2 • ADSL2+ G.Bond

8. Declining Value of the Copper Network ARPU Time • POTS • HSIA • IPTV • Retention • Features • New Services 2009 ROI Dollars Per Line • Rehab • Repair • Labor • Truck roll • Loop power • Management • Equipment OAM Costs

9. A new Service Model • Core-to-door service management • Making the most of bandwidth • Implementation like a cable operator • Unlimited IP service options

10. FTTx Becomes Your Strategic Asset • Make a one-time investment in new infrastructure • Eliminate or reduce future re-builds, upgrades to infrastructure • Build capacity for the future • In anticipation of services emerging • Make the network competitive • Get rid of the bottlenecks • Drive new revenues from the investment • Triple play or multi-play • Higher speed tiers or SLA’s • Value added services • Improve Management (QoS, QoE) • Fit to existing OSS

11. Services Drive Bandwidth Ever Higher MPEG2 MPEG4 MPEG4 2015 - 2025 1995 - 2005 2005 - 2015 3 TV streams Standard Definition Best efforts HSIA 1 mbps upstream VoD 3 TV streams 1 HDTV Better efforts HSIA 1 mbps upstream DVR stream VoD 3 TV streams 3 HDTV 10 Mbps. HSIA 2 mbps upstream multi-DVR streams VoD Games/applications 15/1 Mbps 23/1 Mbps 35/5 Mbps

12. Higher ARPU With FTTH ARPU annually Amortized CapEx with annual OpEx Years

13. Enhanced Subscriber Management • More than 2/3 of all IPTV trouble calls are customer related problems inside the home • HPNAv3 + TR69 + QoS on home wiring • Set top unplugged • Set top freezes/ fails to boot • Coax splitter poor/loose connector • Interference within home • Broken cable/wiring • Multicast error • “Cockpit error” • Power-related problems

14. Investment Costs: VDSL2 & FTTH OAM -OPEX OAM -OPEX Electronics Electronics Construction Construction $ VDSL2 FTTH • 10 Year Total Cost For Triple Play Service

15. Fiber to the Premises Technologies

16. Relative Deployment Cost By Area

17. Most Common Benefits for GPON • Requires fewer fibers than point-to-point • High subscriber density in OLT with splits over point-to-point • Resulting in lower “per port” costs for electronics • No loop powering required using passive splitters • Simple to add customers or rearrange at splitter shelf • Wavelengths support use of RFoG

18. Biggest drawbacks to GPON • Difficult to manage down to subscriber beyond the splitter • Very different from the legacy star network • Asymmetrical bandwidth • Shared bandwidth • Amount available determined by number of splits • Economics decrease as splits decrease • Potentially costly bandwidth migration path • 10G PON or WDM PON a major infrastructure upgrade/change-out • Distance limitations due to splitters and loss budget • Uses encryption key management

19. Most common benefits for Active Ethernet • Bandwidth • Symmetrical • 100 Mbps dedicated • OAM • Point to point like existing copper network • Uses same OSS/OAM as copper network with 802.3ah added • No key encryption required • Simple upgrade path • To 1G optics • Greater distance (loss budget) over PON’s • Simple to design and engineer

20. Most common drawbacks for Active Ethernet • Port density compared to GPON • Few subscribers per terminal, increases per port costs • Potentially more fibers required for feeder • Depending on where GPON split is made CO or curb) • Wavelengths conflict with those for RFoG • Requires loop power at fiber patch panel • Requires a ODF pedestal in distribution area

21. Thank you